Nick Fryer , vice president of marketing at Sheer Logistics , looks at how the pharma and fine chemicals sector can address growing uncertainty in the supply chain
Tackling supply chain bottlenecks in fine chemicals production
Nick Fryer , vice president of marketing at Sheer Logistics , looks at how the pharma and fine chemicals sector can address growing uncertainty in the supply chain
We are keenly aware of the significant challenges the pharmaceutical industry faces to maintain reliable , efficient and resilient supply chains – especially when it comes to fine chemical production . From regulatory demands to geopolitical turmoil , unpredictability can lead to bottlenecks and disruptions that hinder the timely delivery of life-saving medicines . That is why innovative solutions and strategic planning to tackle these issues are more essential than ever before .
Key bottlenecks
The first step in finding solutions is understanding the problem . We think you can break the issues down into three tangible categories :
• Global supply chain disruptions
• Logistics & transportation issues
• Manufacturing bottlenecks
As the world becomes more interconnected , pharmaceutical supply chains are easily impacted by events across the globe , including political instability and natural disasters . The prime example is the recent pandemic , which showed the fragility of the global supply chain
Governments worldwide imposed export and import restrictions and lockdowns that nearly halted the distribution of raw materials and finished goods . Even at smaller scales , unpredictable events , such as the Ever Given blocking the Suez Canal , can severely delay the arrival of needed products .
Getting fine chemicals where they need to be also presents its own unique challenges – specifically when it comes to cold chain logistics and regulations between borders . In many cases , fine chemicals require temperature controls that can impact their efficacy – a difficult task when traveling long distances . Plus , when these materials move through different jurisdictions and countries , they carry their own complexities that lead to delays and higher costs .
Bottlenecks at the manufacturing level can stem from several issues . First , there is difficulty sourcing raw materials , ingredients and other related inputs . Then there is limited production capacity , which can also contribute to production lines halting , and prevent manufacturers from producing fine chemicals at scale . Finally , there can be problems with production itself , such as equipment breaking down , a lack of proper inventory control or even poor management in general .
Strategies to overcome disruption
What can pharmaceutical companies do to help mitigate the challenges and risks within the supply chain ? They can employ a combination of advanced logistical optimisation strategies and cutting-edge technologies to enhance efficiency and resilience . There are several technologies and strategies to employ , including :
Artificial intelligence ( AI ) is driving the way for improved supply chains . With this tool in hand , pharmaceutical companies and manufacturers can improve their demand forecasts , optimise inventory management , and even catch disruptions before they occur . That means supply chains can be more efficient and resilient , while also being more responsive to changing market conditions .
58 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981